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The banks have alleged that Mallya concealed the facts and diverted the money to his son Siddharth Mallya and daughters Leanna Mallya and Tanya Mallya in "flagrant violation" of the orders passed by the Karnataka High Court.

Mallya, who has been in self-imposed exile in the UK since March 2016, was arrested by Scotland Yard on an extradition warrant on April 18 and is currently out on bail. (Image: Reuters)

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New Delhi: The Supreme Court will on Monday pronounce the quantum of punishment against wanted tycoon Vijay Mallya in a contempt case.

The top court had on May 9 held the liquor baron guilty of contempt of court for transferring $40 million to his children in violation of its order.

The court had also directed Mallya, who fled to the UK last year, to appear before it on July 10, Monday.

India has asked Britain to ensure early extradition of Mallya, who is an accused in a bank loan default case of over Rs 9000 crore involving his defunct Kingfisher Airlines.

The consortium of banks led by the State Bank of India (SBI) had approached the top court, saying that Mallya had allegedly transferred $40 million received from British firm Diageo, to his children in "flagrant violation" of various judicial orders.

The apex court had on March 9 asked the liquor baron about the "truthfulness" of his disclosure of assets and the transfer of money to his children.

The bench had reserved its order on two pleas of lending banks seeking contempt action and a direction to Mallya to deposit $40 million received from offshore firm Diageo respectively.

The banks have alleged that Mallya concealed the facts and diverted the money to his son Siddharth Mallya and daughters Leanna Mallya and Tanya Mallya in "flagrant violation" of the orders passed by the Karnataka High Court.

The bench had also posed several queries to consortium of banks and asked it whether any criminal proceedings have been initiated against Mallya.

The court had asked Mallya as to why he did not disclose the receipt of $40 million from London-based company Diageo Plc and subsequent transfer of money to trusts to which his three children were the beneficiaries.

Attorney General Mukul Rohatgi and senior advocate Shyam Divan, appearing for the banks, had contended that unless Mallya deposits $40 million before this court, he does not deserve to be heard and, moreover, he needed to appear personally as the contempt notice has already been issued.

There was a specific order of the High Court that Mallya will not transfer or alienate any movable and immovable assets to any person, Divan had said.

The AG had also told the court that the government is seeking deportation of Mallya from the UK.

Mallya's counsel CS Vaidyanathan had said the money which came from Diageo belonged to his children and not him. The bench had shot back: "Somebody who is faced with a default of Rs 6,200 crore and suppose if he gets Rs 3,000 crore, he should have given it to repay the dues".

Vaidyanathan maintained that the $40 million was not covered under the injunction order.